---
title: "Headline and Core Inflation: Key Difference | Model Diplomat"
description: "Headline and core inflation are key economic indicators; India’s RBI targets headline CPI while monitoring core inflation for clearer price trends."
url: "https://modeldiplomat.com/learn/glossary/headline-and-core-inflation"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- Headline inflation measures the total change in consumer prices including food and fuel, while core inflation excludes those volatile components to reveal underlying price trends.
- Why does the RBI target headline inflation rather than core inflation?
- What exactly is excluded to arrive at core inflation in India?
- How does core CPI differ from the trimmed-mean measure of inflation?
- Can supply shocks in food and fuel still affect core inflation?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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In April 2022, India's headline CPI inflation hit 7.79 percent—breaching the RBI's 6 percent upper tolerance band—largely due to food and fuel prices, prompting the Monetary Policy Committee to begin raising the repo rate from 4 percent.

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